WHY TRADING IS VERY HARD – Part 2

What Most Retail Traders Do

The sad fact, most people become traders after they have lost their jobs or sources of income and they’re now looking for a way out. When certain people still have other sources of income, they won’t want to do anything with Forex – until they lose those sources of income. That’s when they’ll begin to consider trading as a viable option. As a result of this, they put unnecessary pressure on themselves. Things are easier for traders who also have other means of survival.

The principles that guarantee lasting success in the markets are completely contrary to what many people want to hear or do. This is because we’re not naturally wired to trade normally.

Most retail traders blow their accounts, replenish and fund, blow the accounts again, and then replenish it, and then blow it again. This cycle goes on and on. Whenever they think they have a better trading idea or software or strategy, they fund the account and blow it again.

There are also retail traders who move from one broker to another. Clearly, traders deposit more money than they withdraw.

Like I said in my previous articles, NEVER believe anyone who shows you images/screenshots of winning trades. No matter how sweet-mouthed or “professional” they seem to be. The realities are far different than what they’re showing you, and even rookies can also make occasion profits by luck.

Unless they give you access to a demo account to monitor for 4 months, or register a trading account on MyFxbook.com to give you a link to see it, which shows the statistics and data of the trader’s speculative activities (hit rate, RRR, Sharpe Ratio, expectancy, maximum drawdowns, biggest win, biggest loss, consecutive wins, etc.), never believe them. Because they won’t post a screenshot of losing trades.

A Challenge

If there is anyone here who wants to prove me wrong. That person would need to give us access to an MT4 account that is at least 10 years old, and on which an annual profits have been made for 10 years while placing a minimum of 4 trades per month (with no margin calls, but only occasional withdrawals of profits).

Then I would tender my apology in this group, for saying that long-term success is not possible.

But I bet that no-one; I mean no-one, can show me this. Where are the gurus in the house?

BUT. You can say: PEOPLE ARE MANAGING MONEY FOR OTHERS AND THEY ARE GIVING INVESTORS 20% PER MONTH.

Yes, there are many people doing that, but that is not sustainable. Promising investors a certain amount per month is nonsense. How can you ever do that in what you cannot control? If you could control the market to your favor always, then you can tell investors that you will give them a fixed percentage per month.

The truth is that, most of those funds managers will come up with monthly drawdowns and they would spend a long time trying to recover the losses; whereas investors won’t know. The managers will be using deposits from new clients to pay old clients. And as long as they do this, new clients will keep coming.

This is a Ponzi scheme that is not sustainable.

Fact: Professional traders encounter occasional losing streaks and they would spend weeks or months, trying to recover those losses, with hope of moving ahead later.

If you’re the best trader in the world, you will have times when the market will not be favorable to your strategy. The period may be short or long, and it is recurrent. At times, you’ll find yourself spending weeks or months, trying to recover recent roll-downs. There is no way around this. You have to accept this fact or go do something else.

The only difference is that the best trader will eventually recover those losses, no matter how long it takes, and then move ahead and make more profits. Sooner, they encounter another roll-downs, and they stay on the defensive, as long as it takes them to recover. They ultimately recover and make more profits. The equity dips, grows higher, dips again, and makes another higher high, and so on. This is the reality many people won’t accept, and failure to accept that often results financial disaster.

Is There Any Hope?

Yes there is hope and a way out. All hope is not lost. My premise is that if only 1% or 2% or 5% of all retail traders make money consistently, then you should be one of them.

Yes, there is hope” The Ultimate Secrets to Consistent Profits” would be revealed in the next article.

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Comparing Binary Options to Forex

In Forex (FX), you trade only currencies, but in Binary Options (BO) you can trade commodities, stocks, indices, and of course, Forex. Binary trading is a vehicle that is different from Forex trading.

Trading BO gives you a reward that is less than your initial stake; whereas you can make far more than your initial risk in FX if you let your profit run. You can also lose far more than your initial risk in FX if you don’t use stop and there is a strong trend against you.

If I risk 10 USD in binary, I may not win 10 USD if I’m right…. But I can’t lose more than 10 USD, no matter how strong the movement against me is. That’s a great advantage in BO, because risking 10 USD in FX may lose more than that, even with stops. This is because of slippage and spreads.

If I target 10 USD with an FX trade, I cannot win that 10 USD if I’m correct, unless I factor in the spread. If the spread is 3 pips and I target 10 pips, then I need to set the final target to 13 pips (provided I win 1 USD per pip). If I don’t do this, I win only 7 USD. In this case, the higher the spread, the more the loss and the less the gain, as far as FX is concerned.

You cannot be a long-term winner in BO if you risk too much per trade and the same is true of FX. Exit strategies in FX are both manual and automated; but in BO, they’re automated only. I can leave a trade until my stop or target is hit or I close it for myself, with either profit or loss. I can’t do that in BO, as I need to wait for the expiry period to trigger itself, subject to the mercy of the markets.

If you let your profits run always and cut your losses in FX, 30% accuracy is enough to make your triumphant over the long-term. However, in BO, even 55% accuracy will guarantee eventual financial disaster.

You can lose money trading FX if you have 80% or 90% accuracy, but you don’t use stops. On the other hand, if you have such accuracy in BO, that means you’re already a permanently successful trader.

Based on many years of experience, I can conclude that BO is easier than FX.

NB: The next article would explain why many brokers don’t want to do BO.

Whether you want to acquire our Binary Options Strategy or you want us to manage funds for you, please contact us.

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HSBC Holdings stays weak as bulls stay aloof

HSBC Holdings stock (LSE:HSBA) has stayed weak because buyers seem not to be interested in getting seriously active. Following a largely consolidating movement that occurred between November 2019 and February 2020, there was a sustained downwards movement.

The downward movement appears to be losing steam in this month of April; but that would turn out to be a pause which would be temporary before the next leg of a downward trend is resumed.

ADX period 14 is above the level 30, which signifies a considerable amount of momentum. The DM- is above the DM+, meaning that bears hold sway.

The MACD default parameters, has its signal lines below the zero line, while the histogram is above the zero line. It is expected that the histogram will fall below the zero line soon, therefore enforcing the almost vivid Bearish Confirmation Pattern in the market.

The outlook for HSBA is bearish and further weakness is expected.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Trading realities: Trading realities 

  

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

Microsoft price remains upbeat amid turbulence

Microsoft shares (NASDAQ:MSFT) has been able to hold out to the bullish signal on it, against the current turbulence the market is facing, from November 2019 to February 2020, price rose upwards sharply, reaching the supply level at 190.00.

Then the market fell to as low as the demand level of 130.00 before rallying again. The rally has been in place since then: price has been able to stay above the EMA 21. Likewise, the Williams’ % Range period 20 has recently fallen from the overbought territory. The fall was not much and the indicator has halted its fall as it prepares to go upwards again.

Once the Williams’ % Range reaches the overbought region, there would be a confirmed bullish bias on the market. MSFT is supposed to go upwards from here, reaching the supply levels at 180.00, 190.00 and eventually 200.00 this year. This target might even be exceeded.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Trading realities: Trading realities 

  

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

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WHY TRADING IS VERY HARD – Part 1

 People don’t want to hear the truth. But it’s the truth that can bring a solution.  People are more attracted to lies than truths.

When a veteran trader says the truth, people ignore it. But when an impostor tells them what they want to hear, you see lots of responses. How many times have you been blessed by what you want to hear?

There are many rich brokers and many rich IBs (marketers), but there are not many rich traders.

Just like anything in life, they say trading is a zero (0) sum game (your lost funds go to winning traders, and versa).

But the reality is, trading is a minus (-) sum game: Commissions, negative swaps, spreads, uncertainties, efficient markets, small percentage of winners, and high percentage of losers. Trading is clearly expensive.

You think because you can open a brokerage account within minutes, deposit into it and start clicking or tapping, you’re going to be the next billionaire. No Sir or Madam.

Trading is the 2^nd most difficult profession in the world: second only to the job of defusing nuclear weapons. Beating the market on an annual basis, and for the long-term, is one of the toughest jobs in the world. Beating the market seems easy in theory; but not in reality.

It’s almost impossible to beat the market on a long-term basis. Yes, anyone can make profits now, and tomorrow or in few weeks or few months or even a few years. However, to make profits on a long-term basis is almost impossible.

That’s why I always shake my head whenever I see charlatans posting a screenshot of a day’s or  a week’s results, trying to impress simpletons.

Longer-term Trading Success Is Elusive

What we’re talking about here is consistency… A situation in which you declare profits on annual basis. It doesn’t matter whether the profits are small or big; what matters is that you declare profits on annual basis. Nonetheless, almost 99% of traders cannot achieve this because of psychological problems.

There are billionaire hedge funds managers who made billions in the past… They may make that for some years but not for every year.

Those who can really make permanent, consistent profits on annual basis for 5, 10, 15, 20 and 30 years in a row are extremely rare and few. The rest will just achieve short-term success and blow up and then disappear.

Whether you like it or not, there is nobody and there is no instrument that can predict the next move of the market with 100% accuracy always. Gurus and wonderful strategies are ultimately correct less than half of the time.

There are times when predictions and anticipation will go according to plan, and that would bring a false sense of having found the Holy Grail. Eventually, things will go back to even.   

NB: These articles are not meant to discourage you from trading, but to make you realize that the reality is different from what most touts want you to believe. So if you seem to encounter roadblocks, performance ceiling (inability to make profits beyond certain levels) and frustration, it is not because there is curse on you, or there is a witch in your family, or your intelligence is low or you are unlucky or something is wrong with you. It is how the markets are structured to work.

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The most important thing in Binary Options

 Trading is hard, because contrary to what people tend to believe, we cannot really know what the markets will do next. That is why many people find it very difficult to enjoy permanent success in the markets.

The dark side of Binary is that you always get less that your stake if you win. That is why you need a higher accuracy to move ahead. For example, if you stake 100 USD per trade, you will get only 85 or 80 or 75 or 65 or 60 or 50 USD in profits.  I have seen an uncommon instance in which I was given only 22 USD for a stake of 100 USD! Maybe price barely moved in my direction.

I have also seen a rare instance in which I was given 108 USD when I risked 100 USD. That may depend on the kind of currency pair I chose and how strongly the market moved in my favor.

However, Binary Options (BO) has one distinct advantage: As long as you can get at least 75% accuracy, you’ll come out a winner. That 25% inaccuracy may play out for weeks; but you will eventually come out ahead as the 75% accuracy prevails on the losses. 

It is hard to get a system with a long-term accuracy of over 65%, but once you get it, you’re already a permanent winner. That is what our BO strategy has achieved over the years. If you cannot achieve a higher accuracy trading BO, there is no way you won’t end up being frustrated.

From Monday to Thursday, we get an average accuracy of 65%, and on Fridays, we get an accuracy of around 80%. That means we have expectancy of winning 8 trades out of 10 trades on Fridays!

Some of our clients like to trade on Friday only, and some like to trade from Mondays to Fridays. Nonetheless, if there are clients that cannot stomach the 35% inaccuracy of Monday to Thursday, we advise them to trade on Fridays alone, because the inaccuracy of 20% is much more tolerable!

Those who trade on Fridays alone can risk higher than 2% per trade (a maximum of 5% per trade), and then smile to their banks. That big profits will compensate for their absence on Mondays to Thursdays.

If you want to acquire our BO strategy or you want us to manage money for you, using the strategy, you can contact us.

Next week, we will start an article titled: Comparing Forex to Binary Options.

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Don’t say this to 419 people

What should you never say to a scammer?

You can say whatever you want to a scammer. What they say back will depend on the person you're talking to. When I told my scammer I was aware that he was scamming me he went from begging and pleading that my evidence is not real. Asking please believe I am real. I don't need your money I have 800,000 at home. With no access to it.

To the next minute he became defensive and saying maybe I'm a scammer. Telling me I will never get away with it. When I said I reported the crimes to the FBI. He was right I never got away with it. Because the FBI doesn't care. But I reported it anyways, and I would do it again just in case it comes across some FBI agents desk , and he has a real concern about it and wants to proceed investigating the matter.

When I reported my crime to the FBI. I gave them a phenomenal money Trail. I sent them copies of every Amazon iTune card plus all the wire transfer information including the receiver's name and address.

It is my belief and the belief of a couple other people I talked to that the receiver of the money is one of the scammers. So that alone should be enough for the FBI to track them.

It's not what you say; it's what you do. Make sure you never give any personal information or any banking information. And the minute you realize that you're speaking with a scammer, delete that person, block them, and then and run as fast as you can.

Source: https://www.quora.com/What-should-you-never-say-to-a-scammer

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This is why honey doesn’t decay

Why doesn't honey go bad?

For something to spoil there has to be something to spoil it. Honey is almost unique among organic compounds in that it constitutes a "perfect storm" of attributes against spoilage:

Most honey is a supersaturated, the rest is a saturated solution of sugar. Sugar acts hygroscopic, that means it attracts water. Bacteria and some other microorganisms that come in contact with this solution are being desiccated (water is drawn from them into the solution) and explode (ok, ok, they kind of just shrivel, but I like the idea of them blowing up) and die.

This supersaturation of sugar also inhibits the growth of yeast and other fungal spores.

Its pH is 3.26 to 4.48, a killing field for bacteria. Combined with the above-mentioned supersaturation you have both a pH that weakens bacterial walls and a hygroscopic environment. Them bacters don't stand no chance.

And if all that isn't enough, bees process honey by means of an enzyme called glucose oxidase which modifies sugar into gluconic acid ( D-glucono-δ-lactone, a contributor to the above-mentioned pH) and hydrogen peroxide. You might know glucose oxidase from something else: it used to be called "Penicillin A" and is now known as Notatin. Poor bacteria, eh?

This is, by the way, why you should never leave a jar of honey standing open. The supersaturated sugar solution will absorb moisture from the air and gradually become weaker, losing its anti-bacterial properties.

One last warning: honey is, as we discover above, rather safe. It does, however, sometimes contain inactive spores of Clostridium botulinum, the bacterium responsible for botulism. Healthy humans don't get sick from that but infants whose intestinal tract dilutes the honey without digesting it quickly can get sick from it. There is honey that has been radiated with gamma rays to kill those spores dead for good that can be purchased for lots of money. Just wait until the kid is a year old or so and you'll be safe.

Source: https://www.quora.com/Why-doesnt-honey-go-bad 

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A True Story Of Someone Who Always Shows His Results Online

“It begins with an investor who started posting on an online options forum a few months ago after he made a BIG win.

You see, like most options traders, his strategy was to speculate on the price movement of a stock and then buy calls if he thought it was going up and puts if he thought it was going down.

The appeal is that you can take a cheap initial investment and potentially turn it into A LOT of money.

That’s exactly what happened when he turned $22,790.64 into $45,535.65 for an 87.10% gain… in just a few days.

Everyone was very impressed…

Five months later he posted again. His account had grown to $159,891.29 and he just made an astounding $183,291.71 profit in 5 minutes buying options on ALGN.

 “See?!” Everybody said – buying options works! You can turn even a small amount of money into literally hundreds of thousands of dollars!

Boy… was this guy on a roll.

The next thing he did was buy SPY puts. The trade wasn’t going his way until Trump made an inflammatory tweet about the trade war with China and – in less than a minute…

…and RIGHT before his option was about to be worthless….

Out of pure luck, he bagged a 74.95% gain in less than a minute for a $277,109.88 profit…

Then, after the selloff, he figured SPY was going to rebound, so he bought calls…

Whoops! There goes $306,446.43 – 60% of his portfolio.

So he doubled down – SPY MUST go back up after such a sudden and severe selloff, right?

In less than a week, he lost 84.79% of his portfolio.

But the final blow came the week after.

He announced he was buying calls on CGC betting it would go up.

It didn’t – his account was wiped out to just a little over $5,000 (he didn’t post a screen shot of that…and disappeared from the forum).

This kind of horror story is common in the world of options, which is why so many people are “scared” of them!” - Andy Crowder

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We Came Across another Binary Options Strategy and Tested It

There are many binary options strategies out there, but most of them are losers (they make money in the short-term, but make losses in the long-term).

There are 2 reasons why most of those strategies are losers: (1) Their long-term accuracy is below 60% or even below 50%. (2) The money management styles of the strategy as employed by its users are suicidal.

There is a guru who has a large following on Twitter, Telegram, WhatsApp and Facebook. He has been touting his BO strategy as a money spinning machine. The man is a Nigerian and he’s fond of giving free cash and airtime to people online. But it’s also well-known that he has another source of income apart from trading.

The way he praises his strategy is so convincing that we decided to give it a try to see if his strategy is better than our strategy.

We opened a demo account for it, after studying his strategy and practicing it diligently. Yes we mastered the strategy. However, we cannot apply it to the live account we use for our investors. That would be stupid.

How the Strategy works

You use one-minute chart to enter your trades.

You use Volatility Index 10, and the tick is 1 or 2.

Then you watch the market and enter the direction of the candle upon retracements in price. That’s all.

After doing it many, many times. We see that that method only comes with 50% accuracy after a long period of time, though you may think the accuracy is higher than that if you find yourself in a winning streak, which is often temporary.

Then another thing is that the strategy uses a Martingale money management method. Rough example:

If you risk 20 USD and win, you continue risking 20 USD per trade. If you lose a trade, then you risk 40 USD next. If you lose that, then you risk 80 USD next. If you lose that, then you risk 160 USD next, and if you lose that, you risk 320 USD next.

Before you lose 5 trades in a row, the premise is that you’re supposed to win at least once.. And once you win, that win will recover all your previous losses at once, and then you go back to continue risking 20 USD per trade.

The problems with this system are:

You need unlimited funds to continue trading in a losing streak, so that you can recover all your funds once you win a trade. That is the secret of the strategy, not any higher accuracy. But most of us don’t have unlimited funds.

You can lose 5 or more trades in a row and that would eat deep into your account. Winning 5 trades in a row is far less common that losing 5 trades in a row. You can have nice profits quickly, and then suffer crazy drawdowns.

Conclusion: The strategy sounds logical at first, but in the end, it doesn’t make sense. It only wastes time, energy and data; as the more you trade, the more your broker and your IB get richer.

When you stay glued to your computer for a long time, you remain a slave. A free man is someone who spend a little time online and at the end, has some profits to show for it.

Our own strategy takes only 15 minutes or less to trade. And when in a losing streak, we reduce our lot sizes, to reduce losses and control drawdowns. When in a winning streak, we increase the lot sizes, to maximize profits and compound them. And idea that makes you double your risk anytime you lose is guaranteed to make your blow your account eventually.

Whether you want us to manage your funds or you want to buy it and trade it for yourself, you can contact us.

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Barclays price analysis: BARC remains weak as sellers refuse to relent

 Barclays Plc shares (LSE:BARC) remain weak as sellers threaten to short further. The market has fallen so hard in the last few months and the trend remains bearish. The current bearish momentum started this year, ending the bullish effort of 2019.

4 EMAs are used for this analysis, and they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown at the top left part of the chart. All the EMAs are sloping downwards. Price tested the support level at 80.00 and then bounced upwards.

However, the upwards bounce may be a trap for unwary bulls, as things remain weak, and further selling is anticipated. As long as BARC price is below the EMA 200, any rallies into the EMA 20 or 50 could be seen as opportunities to go short at higher prices.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Trading realities: Trading realities 

  

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

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Apple price action generates a valid bullish signal

Apple Inc. stock (NASDAQ:AAPL) has managed to generate a dependable “buy” signal after recent weeks of bearishness. This may be a beginning of a new and prolonged bullish run.

Apple was in a nice bullish movement from October 2019 to February 2020; after which it experienced a massive plunge in February and March. In April, price bottoms as bulls begin to make effort to push price upwards. This frantic effort by bulls are beginning to pay off as price has now crossed the upper Trendline to the upside and closed above it. At the same time, the RSI period 14 has also moved above the level 50; which all indicates a bullish signal.

Price is expected to move higher from this point, and the bullish signal will remain dependable as long as the RSI is above the level 50 and price remains above the upper Trendline. It is even expected that the RSI would soon saunter into the overbought territory soon, as the current bullish rally becomes very strong.

The outlook for AAPL is bright and the resistance levels at 300.00, 350.00 and 400.00 remains attainable.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Trading realities: Trading realities 

  

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

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HOW TO DIFFERENTIATE BETWEEN GOOD, CONSISTENTLY PROFITABLE TRADERS AND CHARLATANS

There are numerous experts who have deep knowledge about markets dynamics and functions, but who cannot translate that knowledge to lasting success as traders.

There are too many so-called gurus out there who’re targeting clients and investors. They would either offer to train you how to trade, offer you trading signals, sell a trading software to you or help you manage money.

These “gurus” often show you screenshots of their trades and want you to believe that they can always beat the markets, and make you rich if you invest with them or if you buy their trading products. In almost all cases, these people are not as good as you think.

If they could really make money, they might not need to convince you to patronize them… Although I’m aware there are real professionals who genuinely want to help struggling traders out there, especially through education. Some of these world-class trading educators are my mentors as well.

Common Nonsense Posted by “Gurus”

This nonsense are images and screenshots posted by those who want to show you how much profit they have made in a trading session or day.

The problems are:

Images and screenshots can be designed to fool people.

Even when they’re real, the images are only what they want you to see. They won’t show you what they don’t want you to see. The images have been cherry-picked so that you think they make money overall.

What is a profitable strategy?

A profitable strategy is the one that makes average losses which are smaller than average winnings, in the long run.

Thus: A losing strategy is the strategy that makes average losers that are bigger than average winners in the long.

As you can see, both good and bad strategies will make profits and losses… But what makes the difference is that the losses must be kept small enough so that you come with a profit in the long run.

Most of the gurus that post account histories screenshots for you to see are only posting what they want you to see. When there is a losing streak (which every trading method under heaven must experience occasionally), they won’t show you the screenshots for that.

They continue doing this intermittently and occasionally, to the extent that some rookies and unsuccessful traders are convinced that they’ve seen a solution to their challenges.

When they do training, they still lose after practicing on their own.

When they follow signals, they still lose in the end.

When they buy their trading systems, they lose money eventually.

When they give money to gurus to trade, they gurus end up losing the money.

That doesn’t mean that there won’t be occasional profits and winning streaks… However, they will eventually face severe drawdowns or margin calls.

When this happens, most affected investors and trainees would not come online to tell people their experience so that they wouldn’t be blamed for being stupid. Likewise, none of the “gurus” will come online to tell you that they just blew people’s monies. They won’t tell you that they suffered losses. What they’d do is to send screenshots of the new methods they’re trying and fool people, while looking for another victim.

To cut the story short: Don’t believe anyone who tells you they’re good traders. The person may be currently enjoying a winning streak, which won’t last.

Who Is a Good Trader?

Who is really a good trader?

He/she is not a person that makes the biggest profits…Even in the short-term. They’re the ones that can withstand heavy uncertainties in the markets, keep trading capital safe and make money in the long-run. They make money, suffer drawdown, recover the losses eventually, and then go ahead, no matter how long it takes. Good traders are known in the long-term, not in the short-term.

There are so many seminars, so many webinars and too many trading methods and services that promise to revolutionize your trading experience. At last, it’s all fake. Those who have attended these events can testify to that.

HOW TO DIFFERENTIATE BETWEEN GOOD AND BAD TRADERS?

This is written in block letters because that’s what this article is all about.

There is a friend who told me about an EA, which was making lots of money. I saw the screenshots and I was blown away. However, I told them that, before I could buy the EA, I’d need a demo account with investor’s password to monitor that account for 4 months. The request was granted, and I monitored the demo account. The EA made nice profits, but within 3 months, the account received a margin call.

I asked the vendor if he saw that. He only tendered apologies. If it was real money that got burnt; what would follow was only apology.

If I didn’t have access to that demo account; neither the vendor nor the friend would tell me anything about the margin call. But because I was monitoring the account, they had nothing to hide.

There are only 2 ways to recognize a winning trader:

A “guru’ must give you access to his live account or demo account (most preferably a demo account with a broker whose demo accounts don’t expire if traded constantly).

You request for the login details of the account, with an investor’s password (not a master password). With an investor’s password, you can only see live trades and account history. You cannot do anything else.

Then, let the guru trade the account for at least, 4 months. Or better, let him give you access to a trading account or demo account that he’s actively managed for at least, 6 months.

As a scalper, he must have placed at least 1000 trades in the last 6 months

As a day trader, he must have placed at least 500 trades in the last 6 months.

As a swing trader, he must have placed at least 100 trades in the last 6 months.

Most FX traders don’t do position trading.

If the above conditions are not met, you’re being invited into a fool’s paradise. An account that is 5 years old, but with only a few trades, cannot be used a litmus test.

Are 4 or 6 months too long?

Please ask yourself this: What have you gained in your many years of being an impatient trader and looking for ways to get rich quickly? NOTHING!

Wouldn’t you rather be patient enough to discover a winning method that will give you permanent success in the markets? Some people have been trading for 15 years and they have nothing to show for it.

After at least 4 or 6 months of monitoring, you can then make a decision for yourself.

RED signals:

Even if the “guru” is currently making money. These are the warning signs that he cannot last very long trading this particular account, no matter the amount of profits he currently makes:

1.      Overtrading. Opening too many positions at a time or having too many open positions. 

2.      Big position sizes, like 0.1, 0.2 even 0.05 lots for each 1000 USD

3.      No stop loss

All the 3 points above are a recipe for financial disasters.

If a guru cannot give you limited access to a demo account or a live account they trade, please ignore any rubbish they tell you or show you. Even on a live account, if a drawdown is due to withdrawals of profits, you’ll see it yourself.

Giving investors limited access to accounts you manage is a great way to market yourself.

Option 2:

If a guru cannot give you any access to his/her demo or live account, then they can sign up and input their demo or live account on Myfxbook.com. This is even more preferable as the link to that account can be given to people to see, plus all the necessary stats of the account. Here, people can see how your account is performing.

Many vendors/marketers won’t want to follow this recommendation. Please protect yourself by ignoring the nonsense (images of winning trades) some “gurus” post online; otherwise do business with them at your own peril.

                                               

Perfect Money/Payeer/BTC/AdvCash/Neteller/Skrill: www.ituglobalfx.com.ng

Perfect Money/Payeer/BTC/AdvCash/Neteller/Skrill: ItuGlobal